Bitcoin price analysis is bullish today as we saw further declines over the past few days and support found at $27,250. Additionally, BTC/USD is currently forming a strong bullish reversal candle, indicating that the retracement should follow early next week. Therefore, we expect a quick recovery to begin overnight, with the previous support of $28,250 as the first target.
The market traded in the red for the past 24 hours as the selloff continued across the board. The leader, Bitcoin, lost 3.62%, while Ethereum around 5%. The rest of the top altcoins tested an even bigger downside.
Bitcoin Price Movement in the Last 24 Hours: Bitcoin Falls Another 5% and Begins Reversal Consolidation
BTC/USD traded in a range of $27,049.04 to $28,721.02, indicating high volatility over the past 24 hours. The trading volume decreased by 19.22%, totaling $33.89 billion, while the total market capitalization is trading around $526.56 billion, resulting in a market dominance of 47.82%.
BTC/USD 4-hour chart: BTC ready to retrace?
On the 4-hour chart, we can see a clear 4-hour reversal candle forming, indicating that more upside should follow by the end of the day. Likely, the previous support at $28,250 will soon be tested as resistance, with much more upside potential to be seen later next week.
Bitcoin price action saw a strong break below the previous consolidation zone over the weekend. After forming a descending triangle consolidation pattern in early June, BTC/USD saw weakness mid-week as bulls failed to retest the descending trendline once more.
From there, consolidation formed between $30,000 and $30,500, with lower and lower local highs indicating a downward push to follow. The first lower advance followed on Friday, leading to a clear break from previous major support at $29,250.
After a brief retest of previous support as resistance, Bitcoin continued even lower early on Saturday. The next support target was hit at $28,250 early yesterday, potentially indicating a reversal to follow.
However, BTC/USD failed to reverse after several hours of consolidation late yesterday, leading to further selling overnight into today. Bitcoin price quickly lost another 5% before support was found at $27,250. Around here, consolidation followed today, with the formation of a rejection candle over the past few hours.
Overall, if we can see strong price action over the next few hours and a strong daily close, BTC should be very bullish next week. It is likely that the previous support of $28,250 will be reached quickly, with much more room for a retracement to follow considering how much has been lost over the past few days.
The most likely target for the upcoming retracement is the previous major support at $29,250. If the price can stabilize around there, a clear lower top would be established, paving the way for much more downside over the next few weeks.
Alternatively, if the recovery can move to $30,500, we would only see a slightly lower top. Bitcoin price could then attempt to set a higher low to eventually reverse the current multi-month decline. All in all, it all depends on how well the bulls will manage to retrace the price of Bitcoin next week.
Bitcoin Price Analysis: Conclusion
Bitcoin price analysis is bullish today as we have seen a steep decline over the past few days resulting in a loss of over 13%. Therefore, the bears should finally be exhausted and the current support at $27,250 should act as a pivot point for the market. If the current 4-hour bullish pin-bar candle can close strongly, we could see the first upside push overnight.
Until Bitcoin goes further, check out our price predictions on UNUS SED LEO, BITO, and Klaytn.